Lombard, Mapfre Middlesea and Malita report improved results

MSE Trading Report for week ending March 9, 2018

The MSE Equity Total Return Index surrendered a portion of last week’s gain, closing 0.166% lower at 8,648.238 points. A total of 19 equities were active during the week of which ten closed in the red, while six headed north as total turnover during the week amounted to €1.66 million over 229 trades.

In the banking sector, HSBC Bank Malta plc was a drag on the index as its share price declined by 1.02% to close at €1.94. The equity traded heavily as 161,382 shares were exchanged over 34 deals.

Bank of Valletta plc registered a similar trading volume of 170,777 shares over 58 transactions. This trading activity however had no impact on the closing price of the equity as a positive performance on Friday compensated for the losses registered earlier during the week, closing unchanged at a price of €1.83.

On Thursday, Lombard Bank Malta plc announced a rise in the group’s profit after tax of 7%, from €5.3 million to €5.7 million. Subsequently, earnings per share also increased by 7.76% to €0.116. Net interest income rose by 9% to €15.43 million, as a result of increased consumer lending and the bank’s treasury activity. Net Fee and Commission Income also improved by 9% as a result of a higher volume in transaction banking. Postal sales and other revenues experienced a rise of 40% over last year, to €37.37 million. A net dividend of €0.026 per share will be distributed on May 4, 2018, to all shareholders on the register of shareholders as at March 27, 2018. This announcement had no effect on the share price as the equity traded once at the previous closing price of €2.40, last Monday.

FIMBank plc recorded a loss in share value of 0.82%, settling at $0.605. This was the outcome of five transactions in which 28,124 shares were executed. On Thursday, the bank announced that its Annual General Meeting is scheduled for May 9, 2018.

On Friday,Mapfre Middlesea plc announced that the group’s profit after tax for 2017 reached €13.52m, translating to a considerable 34% increase over the previous year’s figure of €8.93m. The company registered a 3.2% increase in turnover over the previous year, to reach €61.94 million in gross premium. Although investment income was marginally lower than the previous year, it was driven by improved property rental income and fair value movements, particularly on property investments. The company also managed to maintain a strong regulatory solvency position with regards to its balance sheet. The board of directors recommended the payment of a final net dividend of €0.10543 per share, to be paid on May 18, 2018 to shareholders on the company’s share register as at April 27, 2018. The equity headed south by 0.54%, closing at €1.84. In total, 33,414 shares traded over ten deals, with the bulk of trading being registered on Friday.

Malta International Airport plcpublished its traffic results for February on Thursday. Once again, this announcement showed positive changes in passenger movements as traffic for the month grew by a significant 18% over the previous year. This growth was in line with increases of 14% in aircraft movements and 15.5% in seat capacity. The top contributors were the United Kingdom, Italy, Germany, Belgium and France which account for 71% of the total passenger movements recorded. On Tuesday, the Airports Council International announced that the airport has claimed the second place in Europe in its Airport Service Quality awards. The share price was up by 0.82% to €4.94 as a consequence of 11 deals of 14,964 shares.

The telecommunications company, GO plcpublished preliminary results on Tuesday, which showed a reduction in profit for the Group for 2017 of 11%, from €20.3 million to €18 million. Consequently, earnings per share experienced a similar drop of 10.3% to €0.165. The Board of Directors resolved to recommend a final net dividend of €0.13 net of taxation per share, to be paid on May, 16 2018 to all shareholders on the company’s register as at April 13, 2018. The company also announced that the Annual General Meeting will be held on May 14, 2018. GOenjoyed a strong week as it advanced by 1.69% to reach a one-month high of €3.60. The equity registered 14 deals in which 41,840 shares changed hands.

MaltaPost plc had a rather quiet week as a single trade of 807 shares shaved 0.52% off the share price, to close at €1.90.

International Hotel Investments plctraded four times throughout the week as 9,050 shares were exchanged. Consequently the share price was down by 1.59% to €0.62.

RS2 Software plc broke its negative nine straight weeks’ streak, as it edged 1.56% higher to close the week at €1.30. The equity was very liquid as a total of 85,453 shares traded over 27 deals.

In the food and beverage sector, Simonds Farsons Cisk plc registered mixed performances during the week which cancelled each other out as the equity ultimately closed unchanged at €6.95.

The retail conglomerate, PG plc recovered last week’s loss as it recaptured the €1.35 price level across a single transaction of 27,900 shares.

In the oil sector, Medserv plc posted significant losses as of 4.96% to settle at €1.15. Trading volume totalled 16,000 shares over three deals.

In the property sector, Plaza Centres plc traded flat during the week but a transaction on Friday dragged the closing price down by 3.77% to €1.02. In total, eight deals were registered as 52,710 shares changed hands.

Similarly, Trident Estates plc slumped 4.21% to end the week at €1.82 as a result of seven deals of a combined 10,413 shares.

During the week, a couple of transactions of 36,100 MIDI plc shares were executed at a price of €0.334, translating to a loss in value of 1.76%.

On Tuesday, Malita Investments plc announced that profit for the year has more than doubled between 2016 and 2017, from €6.42 million to €12.98 million. This increase was largely due to a positive change in fair value of investment property of €16.69 million, which figure stood at €3.02 million in the previous year. As a result, earnings per share also doubled from €0.0434 in 2016, to €0.0877 in 2017. Subject to approval at the AGM, a net dividend of €0.01853 per share shall be paid on May 4, 2018, to all shareholders on the register as at March 28, 2018. The announcement was received well among investors as the equity posted solid gains of 2.4% to close at €0.855. Malita was the most liquid equity of the week as 520,123 shares traded across 30 deals.

Malta Properties Company plc followed suit as it bounced back from last week’s performance, climbing 3.75% to €0.498. Trading volume amounted to 33,565 shares over seven deals.

Tigne Mall plc registered a single deal of 10,000 shares during the week, executed at a price of €1.00 - 0.99% lower than its previous closing price.

In the corporate debt market a total of 35 issues were active of which, 12 headed higher and ten moved in the opposite direction. The 5% Dizz Finance plc Unsecured € 2026 was the best performer this week as the price increased by 0.88% to close at €108.95. On the other hand, the 5.75% International Hotel Investments plc Unsecured € 2025 surrendered two weeks’ gains as it drifted lower by 2.71%.

Meanwhile, yields in the LocalSovereign Debt market were down, as out of a total of 20 active issues 12 moved higher, while six edged lower.

This article which was compiled by Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such. The Company is licensed to conduct investment services by the MFSA and is a Member of the Malta Stock Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email info@jesmondmizzi.com